INDIA: United Spirits toasts strong Q3, again
- Net sales leap 45%
- Profits up by a third
- Whyte & Mackay profits slide
United Spirits, part of UB Group, motors in Q3
United Spirits has reported strong rises in sales and profits in its fiscal third quarter as consumer demand remains high on India's spirits market.
United Spirits said yesterday (10 February) that net sales for the three months to the end of December jumped by 45% to INR19.69bn (US$430.8m). Excluding gains from the acquisition of Balaji, sales rose by 21.5% for the quarter. Volumes rose by 14%, the Vijay Mallya-controlled group said.
The increases reflect growing demand for premium spirits in India and follow a 31% leap in United Spirits' net sales in the same quarter of last year.
For the third quarter of 2010/11, net profits increased by 34% to INR1.3bn. Lower raw materials costs helped to boost EBITDA, which rose by 23% to INR2.85bn, said the group, which constitutes around two thirds of India's spirits market by volume.
For the first nine months of United Spirits' fiscal year, volumes rose by 12% to 83.5m cases, with sales up by 30% to INR48bn and EBITDA up by 24% to INR8bn.
Over the same period, the group's Scotch whisky subsidiary, Whyte & Mackay, reported EBITDA down by 57% to GBP22.5m (US$36.1m). The drop reflects Whyte & Mackay's decision to forego bulk whisky sales and concentrate on its branded business, said United Spirits.
The company's French wine subsidiary, Bouvet Ladubay, reported a 24% rise in sales for the nine months, to EUR15.7m (US$21.2m). EBITDA rose by 25% to EUR2.28m on the same period of the previous year.
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